𝐌𝐨𝐧𝐝𝐚𝐲 𝐢𝐬 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐃𝐚𝐲:
T𝐚𝐱 𝐩𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐢𝐬 𝐞𝐬𝐬𝐞𝐧𝐭𝐢𝐚𝐥 𝐟𝐨𝐫 𝐞𝐯𝐞𝐫𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫

In Switzerland, navigating the world of investments goes beyond choosing stocks and bonds. It is also about understanding how your investor profile impacts taxation.

Here is why tax planning matters for every type of investor:

1️⃣ 𝐌𝐚𝐱𝐢𝐦𝐢𝐳𝐢𝐧𝐠 𝐫𝐞𝐭𝐮𝐫𝐧𝐬 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐭𝐚𝐱 𝐚𝐰𝐚𝐫𝐞𝐧𝐞𝐬𝐬
Tax obligations vary greatly by investment profile. For example, private investors classified as Professional Securities, Participation, or Real Estate Dealers become subject to income tax on capital gains, unlike other private investors who enjoy tax-free gains. Knowing your classification can help optimize returns and manage tax liabilities effectively.

2️⃣ 𝐆𝐮𝐚𝐫𝐝𝐢𝐧𝐠 𝐚𝐠𝐚𝐢𝐧𝐬𝐭 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐬𝐜𝐚𝐦𝐞𝐬
The allure of high returns can sometimes mask scams, like Ponzi schemes, which target uninformed investors. International investments can also carry hidden tax and regulatory risks, so due diligence is essential.

3️⃣ 𝐍𝐚𝐯𝐢𝐠𝐚𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐜𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐢𝐞𝐬 𝐨𝐟 𝐢𝐧𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐭𝐚𝐱𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐝𝐨𝐮𝐛𝐥𝐞 𝐭𝐚𝐱 𝐭𝐫𝐞𝐚𝐭𝐢𝐞𝐬
For global portfolios, understanding tax treaties is essential to avoid double taxation. However, differing rules on dividends, interest, and capital gains can create unexpected tax obligations. A smart tax strategy ensures you are not overpaying on foreign income and are fully using treaty benefits.

4️⃣ 𝐓𝐢𝐦𝐢𝐧𝐠 𝐚𝐧𝐝 𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐩𝐞𝐫𝐢𝐨𝐝𝐬 𝐦𝐚𝐭𝐭𝐞𝐫, 𝐞𝐬𝐩𝐞𝐜𝐢𝐚𝐥𝐥𝐲 𝐟𝐨𝐫 𝐜𝐫𝐨𝐬𝐬-𝐛𝐨𝐫𝐝𝐞𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬
Different countries tax assets based on holding periods or type of gain (capital or income). Strategic timing of asset sales and understanding these rules can lead to substantial tax savings.

5️⃣ 𝐋𝐞𝐯𝐞𝐫𝐚𝐠𝐢𝐧𝐠 𝐭𝐚𝐱-𝐚𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐝 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐬 𝐚𝐥𝐨𝐧𝐠𝐬𝐢𝐝𝐞 𝐠𝐥𝐨𝐛𝐚𝐥 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬
Swiss tax-advantaged accounts, like Pillar3a pensions, offer significant benefits but should be approached with caution due to potential pitfalls, as recent news shows. The same applies to certain international investment structures, such as the controversially discussed IRAs in the United States or ISAs in the UK. Knowing how these accounts interact with international investments can help maximize growth potential and tax savings.

𝐓𝐡𝐞 𝐛𝐨𝐭𝐭𝐨𝐦 𝐥𝐢𝐧𝐞: Tax planning is key to building and protecting wealth. Understand your investor classification, leverage treaties, and avoid pitfalls for a tax-efficient strategy.

Stay tuned every Monday as we explore more ways to be a tax-savvy investor in a dynamic global tax landscape!

The ten-year tax loss carry forward period:
A closer look at Switzerland’s proposal

Switzerland is moving to modernize its tax framework, potentially. The Federal Council published its draft law and the corresponding dispatch on extending the tax loss carry forward period from seven to ten years at its meeting on 27 November 2024 . This change would allow businesses more time to offset prior losses against future profits, aligning better with the realities of long business cycles.

For investors, this is highly relevant as it impacts corporate financial stability, deferred tax asset recognition, and long-term profitability.

This edition of Investor Monday explores the proposed extension, compares Switzerland’s approach with other jurisdictions, and analyzes the broader implications for businesses and investors alike.

The change would be particularly relevant for industries with long investment cycles, such as technology, biotech, pharma, and infrastructure, where profitability often takes years due to significant upfront costs. It also addresses challenges caused by economic disruptions like COVID-19 and highlights the need for measures that reduce the risk of losses expiring unused.

Globally, tax systems vary widely. While some allow indefinite tax loss carry forwards or include carry back mechanisms, these are often paired with minimum taxation requirements to ensure a baseline contribution.

While Switzerland does not offer indefinite carry forwards or carry back options, the additional flexibility would make its tax framework more competitive compared to the current seven-year limit.

This proposal would offer businesses and investors new opportunities for:

Increased flexibility for long-cycle industries: Companies in sectors with delayed profitability can better match losses with future profits, reducing taxable income over an extended period.
Better alignment with cash flow needs: A longer carry forward period stabilizes income, helping companies manage taxes during volatile cycles.
𝐑𝐞𝐜𝐨𝐠𝐧𝐢𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐃𝐞𝐟𝐞𝐫𝐫𝐞𝐝 𝐭𝐚𝐱 𝐚𝐬𝐬𝐞𝐭𝐬 by increasing recognition opportunities, reducing write-down risks, and necessitating international alignment for cross-border tax coordination

Discover how this proposal impacts tax planning, deferred tax assets, and long-term strategies in the Newsletter:

𝐖𝐞𝐚𝐥𝐭𝐡 𝐩𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐰𝐢𝐭𝐡 𝐜𝐫𝐲𝐩𝐭𝐨 𝐚𝐬𝐬𝐞𝐭𝐬

This Investor Monday, we are diving into the essentials of wealth planning with crypto assets.
A clever, thought-through approach can help you navigate tax implications, protect your assets, and create opportunities for growth.
𝐇𝐞𝐫𝐞 𝐚𝐫𝐞 𝐭𝐡𝐞 𝐭𝐡𝐫𝐞𝐞 𝐤𝐞𝐲 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬:

Timing: In a volatile market, timing transfers whether for gift, donation or inheritance purposes can be crucial in light of potential tax implications
Create stability and control: The right structure provides the flexibility to manage volatility, secure stable transfers, and align with long-term goals --> think trusts, foundations, and diversified portfolios.
Growth Potential: A carefully balanced portfolio that includes high-growth and stable assets is essential. A strategic mix from cryptocurrencies and stablecoins to NFTs helps to shield wealth from market swings while allowing for value appreciation over time

Want to make the most of your crypto wealth?

𝐑𝐞𝐚𝐝 𝐭𝐡𝐞 𝐧𝐞𝐰𝐞𝐬𝐭 𝐠𝐮𝐢𝐝𝐞 𝐡𝐞𝐫𝐞:

And reach out directly to get started!

𝐌𝐨𝐧𝐝𝐚𝐲 𝐢𝐬 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐃𝐚𝐲:T𝐚𝐱 𝐩𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐢𝐬 𝐞𝐬𝐬𝐞𝐧𝐭𝐢𝐚𝐥 𝐟𝐨𝐫 𝐞𝐯𝐞𝐫𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫

𝐌𝐨𝐧𝐝𝐚𝐲 𝐢𝐬 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐃𝐚𝐲:
T𝐚𝐱 𝐩𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐢𝐬 𝐞𝐬𝐬𝐞𝐧𝐭𝐢𝐚𝐥 𝐟𝐨𝐫 𝐞𝐯𝐞𝐫𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫